Bank of Lithuania

Bank of Lithuania securities lending under the public sector purchase programme

Seeking to support bond and repo market liquidity, the European Central Bank (ECB), together with other Eurosystem national central banks, lends securities purchased under the public sector purchase programme (PSPP). The Bank of Lithuania's PSPP holdings are available for lending via securities lending agents or under the so-called fails mitigation programme.

Securities lending via agents

Lending of PSPP securities holdings takes place on a cash neutral basis, by entering into repo and reverse repo transactions. The Bank of Lithuania lends selected securities via its lending agent – Deutsche Bank AG – under the terms and conditions determined by the Bank of Lithuania.

Main terms and conditions of transactions:

  • Pricing – no less than 10 basis point spread between the interest rates on repo and reverse repo transactions.
  • Term – up to 97 calendar days.
  • Valuation haircut – 4 per cent, applicable to securities on repo or reverse repo transactions.
  • Eligible collateral – PSPP-eligible securities with a minimal rating of A– and a maximum remaining maturity of 15 years.
  • Borrowing limits – up to 2.5 per cent of the amount outstanding of a single issue for an individual counterparty, with a maximum of EUR 200 million for any such issue and a maximum nominal ticket size of EUR 50 million.

To become an eligible counterparty, please contact Deutsche Bank AG ([email protected]).

Fails mitigation programme

The Bank of Lithuania, as a lender of securities purchased under the PSPP, participates in the fails mitigation programme (Securities Lending and Borrowing Programme) of Euroclear Bank SA/NV, an international central securities depository. The terms and conditions of the programme are the standard conditions defined by Euroclear Bank SA/NV. For further information, please contact Euroclear Bank SA/NV directly.

Securities available for lending via agents or under the fails mitigation programme:

ISIN Issuer Coupon Maturity
XS1020300288 Government of Lithuania 3.375 22/01/2024
XS1310032187 Government of Lithuania 1.250 22/10/2025
XS1130139667 Government of Lithuania 2.125 29/10/2026
XS1619567677 Government of Lithuania 0.950 26/05/2027
XS1310032260 Government of Lithuania 2.125 22/10/2035
XS1619568139 Government of Lithuania 2.100 26/05/2047
EU000A1U98Z1 European Stability Mechanism 1.250 15/10/2018
EU000A1U9886 European Stability Mechanism 0.050 17/12/2018
EU000A1U9829 European Stability Mechanism 0.875 15/10/2019
EU000A1U9910 European Stability Mechanism 0.100 03/11/2020
EU000A1U9811 European Stability Mechanism 1.375 04/03/2021
EU000A1U9985 European Stability Mechanism 0.000 18/10/2022
EU000A1Z99E3 European Stability Mechanism 0.100 31/07/2023
EU000A1U9803 European Stability Mechanism 2.125 20/11/2023
EU000A1U9951 European Stability Mechanism 0.125 22/04/2024
EU000A1U9894 European Stability Mechanism 1.000 23/09/2025
EU000A1U9944 European Stability Mechanism 0.500 02/03/2026
EU000A1Z99B9 European Stability Mechanism 0.750 15/03/2027
EU000A1U9969 European Stability Mechanism 1.125 03/05/2032
EU000A1Z99D5 European Stability Mechanism 1.200 23/05/2033
EU000A1U9928 European Stability Mechanism 1.625 17/11/2036
EU000A1U9977 European Stability Mechanism 0.875 18/07/2042
EU000A1U9902 European Stability Mechanism 1.750 20/10/2045
EU000A1Z99A1 European Stability Mechanism 1.800 02/11/2046
Last update: 21-08-2018